I don’t want to do tax anymore

I started my company as a bookkeeping business. It was tough to attract clients since everyone wanted bookkeeping and tax preparation services. After working in public accounting, I could do taxes but wasn’t certified, so I ended up getting certified. I’ve offered tax prep for two years, which helped my business grow and earn six figures in less than a year. The problem is, I despise taxes. I hate the research, form instructions, explaining the same thing to clients multiple times, and most of all, the deadlines… those awful deadlines. Clients often disappear for months and send me their tax info on 4/14, expecting the return to be filed by 4/15. Any suggestions on how to phase out tax prep services and focus on growing bookkeeping instead?

Keep getting the clients and hire someone to handle the taxes, or find a partner who loves taxes but isn’t into bookkeeping.

Tennyson said:
Keep getting the clients and hire someone to handle the taxes, or find a partner who loves taxes but isn’t into bookkeeping.

My husband loves taxes but hates bookkeeping. I’m sure you can find someone like that to complement your practice.

It’s your business, set your boundaries. Don’t let clients dictate how you run it. Partnering with someone who loves taxes but hates bookkeeping is a great solution.

Gentry said:
It’s your business, set your boundaries. Don’t let clients dictate how you run it. Partnering with someone who loves taxes but hates bookkeeping is a great solution.

Yes, boundaries are essential. We don’t guarantee timely filings if clients don’t provide their documents by 4/1. This gives our firm two weeks to catch up and avoids last-minute chaos.

@Sky
I set a rule that docs need to be received 30 days before the deadline, or they won’t be done on time. It still doesn’t stop people though.

Hadden said:
@Sky
I set a rule that docs need to be received 30 days before the deadline, or they won’t be done on time. It still doesn’t stop people though.

You also need to hold them accountable. It’s time to enforce those rules.

I’ve been in bookkeeping for 30 years and have always refused to do taxes. I won’t even handle payroll anymore. Best of luck to you!

Consider providing engagement letters that clients must sign before tax season, with clear deadlines. If they don’t get their info to you on time, let them know you can’t guarantee their filing and may have to file an extension. If they don’t sign or comply, they can be let go as clients.

Consider raising your prices.

I’ve had clients leave for cheap outsourced services, but I’ve also fired some due to obvious bookkeeping errors. You should find a tax expert who doesn’t do bookkeeping and create a solid partnership.

People like me buy clients from businesses like yours. You’ll have no trouble finding someone to take them over.

Outsource the tax part.

I’m a bookkeeper and don’t do taxes at all. I have an accountant partner who handles tax filing. I haven’t struggled to find clients, and I stick to providing bookkeeping services. If someone doesn’t need bookkeeping, I just refer them elsewhere.

I love doing tax returns but hate bookkeeping, especially payroll. You could hire an EA as a tax assistant, review their work, and offer excellent service to clients who hand in their documents. You could also partner with someone who does corporate/partnership returns and buy E&O insurance for added liability protection.

In my engagement letters, I make it clear that if I don’t have all the necessary info at least 14 days before the filing deadline, I won’t guarantee a timely filing. Clients will adapt, and the ones who don’t can be let go.

Connect with other established firms that can collaborate with you. Feel free to give me a call if you’d like some help.

Outsource tax prep to firms in India who can handle it for you. Try Sureprep.

I’ll take the business!